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Noticed this in playtests, had less instances of someone dying as they realized they had picked up power. Adding that barrier, the conscious decision to pick it up, led to me actually getting a bit more power ammo more often.

Sometimes players ignore it entirely, as they're focusing on a kill or getting to a portion of the map to trigger a super.

From the looks of it, yes.
Pretty much works the exact same way as Power Ammo in it's current state but instead of only being acquired via a wall pickup, defeated enemies who have Power Ammo drop some of theirs on the ground which can be picked up by other players.

Yep. You can see in the video, though, the timer is pretty short. It's still a risky move to try to get that power brick if it's out in the open when you know enemies are about, but it can pan out to get a slug or two in your shotgun to continue your spree.